Cash-rich individuals and companies seeking high returns are flocking to what has become the hottest business in town: portfolio management services.
Promoted by home-grown hedge funds, the assets under management of portfolio management services have catapulted four-fold in the last one year, to around Rs 2,000 crore.
Earlier, high net worth individuals and companies parked their funds with either mutual funds or trustworthy brokers for deployment in the market. The latter guaranteed a minimum return on their investment.
But the trend is being institutionalised with a range of sops. Hedge funds are now offering profit-sharing agreements rather than the plain vanilla guaranteed, higher-than-market returns. And the star cast includes big industry players
